What Did Financial Institutions in the US Learn From FinTech Startups?

As much as financial technology innovators would like to believe in a challenge they impose on institutions, in reality, the hype is often exaggerated. Among factors that played a major role in bloating the FinTech threat are an outstanding marketing (like with Lemonade) and overvaluation by VC firms and angels. As a result, the reality check sometimes demonstrates holes in general judgment (Square-Starbucks deal, for example) and casts doubts over business models.

Nonetheless, we cannot deny an important role financial technology startups are playing in the ecosystem and vital for institutional players’ lessons they have taught. Eventually, financial institutions will have all important innovations adopted and will become equally savvy with technological advancements that FinTechs ...

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